Challenging times How the global community adapts to the changing environment - unisonSteadfast informs Articles of the Members Insurers report
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HAMBURG | GERMANY | FRIDAY, 20 DECEMBER 2019 | THIRD EDITION
Challenging times
How the global community
adapts to the changing
environment
unisonSteadfast informs
Articles of the Members
Insurers report
2
Dear members and
business partners,
Another year is coming to a close and with it turbu- Meanwhile, the ubiquitous digitalization of our world
lent times, marked by many dynamic processes and is progressing at an increasing pace and we are con-
the resulting changes. fronted with the effects of these changes every day.
Change and transformation is also the theme of this
Beside the ongoing issue of Brexit, where the British issue of unisonTimes. This year’s developments have
people finally had their say and where further devel- by no means passed by our industry. In the meantime,
opments seem to have been finally sealed, there have it has become clear that adjustments in our modern
also been political upheavals elsewhere. times are no longer just individual efforts of a project-
like nature, but rather that continuous adaptation to
In the looming age of the “strong men” at the levers our dynamically changing world is required.
of power, the accomplishments of free world trade Constant change is the new constant!
that have been achieved over decades are being
put ad acta by a simple coup de main. While on the The articles in this issue of unisonTimes deal with
other hand, the global networking of the supervisory these topics from different perspectives, starting with
authorities continues to progress steadily and thus social changes, such as the way the millennials rede-
contributes to the ever-increasing importance of fine individual mobility, the consequences of the trade
compliance. war between the USA and the People’s Republic of
The major issue of climate change and sustainability China and multiple revisions of the insurance brokers’
is being discussed controversially on a broad political framework in numerous countries, to the generation
level. However, the global economy has long since of innovative products and new concepts to deal with
begun its adaptation processes and the young gen- the altered circumstances and risks.
erations are bringing about a paradigm shift in their
lifestyles. We would like to thank our members for submitting
numerous articles, only a selection of which can ap-
The new positioning of the current economic super- pear here, and would be pleased if your willingness
powers - both military and in terms of trade - has an to contribute remains unbroken in the future.
increasing impact on our business. Therefore, it is unisonSteadfast has also evolved this year. Our net-
important to recognize and master the challenges, work now unites around 800 medium-sized bro-
but also not to overlook arising opportunities. kers worldwide, making it the largest independent
3 insurance broker network in the world in terms of numbers. We have established a new presence in Shanghai, where a former employee of our account management team from Hamburg will be available for any China-related business. We have also been able to report initial successes of our practice groups. I would like to take this opportunity to thank you all for your great interest in our network, your loyalty over all the years and your personal support of us and our mission. We are confident that our mem- bers, our industry and our network will master the waves of change! We at unisonSteadfast wish you all a Merry Christmas, no matter where you are in the world, and a Happy New Year of peace, success, happiness and the tiny bit of luck that we all need! Yours Rolf Diekhoff
4
Allied Africa Broker Network Anika Insurance Broker CAPACITY KOREA
Allied Africa Broker Network (AAB) Anika Insurance Brokers Sdn. Bhd. Since established in 2007, Capacity
was formed in 2013 as an initiative (“AIB”) was established in 1968 and Korea has steadily grown through
of Indwe Risk Services (Pty) Ltd., it is the oldest local insurance bro- competitive and differentiated
creating a strategic response to ker in Malaysia with an annual pre- insurance service and perpetual
the convergence of global market mium turnover of MYR66 million. efforts for improved client satis-
interests in Africa. AIB’s Head Office is located in Kuala faction. Our in-depth experience
Lumpur and it has 4 branches in contributes to the creation of high-
It is an integrated network of in- Penang, Kota Kinabalu, Ipoh and quality solutions and professional
dependent, African-owned and Johor Bahru. The company is cur- results.
operated insurance brokers, co-or- rently certified with the MS ISO
dinated from Johannesburg, South 9001:2015 for it’s quality manage- As the expert offering employee and
Africa, with direct representation in ment system. As a leading provider corporation insurance, we provide
over 14 countries. of insurance broking services in the all necessary insurance products
country, AIB offers a wide range of not only for employee group in-
Members of AAB abide by the high- flexible and innovative insurance surance, but also for general insur-
est code of conduct, providing tai- solutions tailored to the diverse ance such as property & casualty
lor-made insurance solutions and requirements of the clients. It has insurance and business insurance.
risk management strategies with a team of dedicated, experienced We are the pioneer to explore and
an in-depth knowledge of their and qualified professionals who are strengthen our specialty for the
territories as well as important per- committed to service excellence. better market. As a result, we have
sonal relationships in most of sub- received good feedback and trust
Saharan Africa. from hundreds of multinational
companies and this makes us es-
AAB offers these solutions to a wide tablish a foundation for providing
range of organizations and compa- various commercial insurance ser-
nies across many industry sectors. vices to global and Korean com-
panies around the world.
Our mission is straightforward. Ca-
pacity would endeavor to provide
competitive premium price quota-
tion, convenient and prompt claim
service, the adequacy and mainte-
nance of insurance, risk manage-
ment and assessment based on our
expertise in insurance to prioritize
Contact: Contact: the client’s need-optimized insur-
Mr. Alan Glen Mr. Ping Leong Chong ance proposal.
alang@indwe.co.za shi_min@anika.com.my Contact:
Jan Drahota Mr. Shi Min Yeow Mr. Ryan Kim
jand@indwe.co.za plchong@anika.com.my ryan.kim@capacitykorea.com
www.alliedafricabrokers.com www.anika.com.my www.capacitykorea.com
5
FINIB Oy Frank Glennon Ltd. KLINGLER Insurance Broker
Operating since 1995, Finib is one As a privately owned broker, found- “We insure your renewable energy
of the oldest insurance broking ed in 1948; Glennon employs 100 projects!” KLINGLER Insurance Bro-
companies in Finland. With its 32 professionals, based in Dublin City ker is an international commercial
employees it is also the biggest Center. The addition of Glennon insurance broker who has been
privately-owned broker company to unisonSteadfast will provide a specializing in renewable energies
in the market. trusted Irish partner who under- for more than 10 years. Offering our
stands the multinational segment industry-specific insurance solu-
We hold a licence from Finnish Fi- and has an outstanding reputa- tions and our self-developed in-
nancial Supervisory Authority (FSA) tion globally for service in both the surance concepts, we can support
to mediate both life and non-life General Insurance and Employee green companies in the realization
insurances and we co-operate Benefits areas. of their renewable energy proj-
with all insurers operating locally ects by means of both an effective
in Finland. Some of the firm’s sector special- and efficient risk management. In
ties include: Construction (Civil this way, we can contribute our
Additionally, we are a member of and Structural), Real Estate, Affinity, little share to the energy system
Finnish Insurance Broker Associa- Food, Technology, Medical Devices transformation, not only by pro-
tion and part of the Finnish Real and Pharmaceuticals. viding insurance but also with our
Estate Management Federations digital work processes with prac-
service network. “Glennon are delighted to join the tical, cloud-based tools for our
unisonSteadfast as the Broker Part- clients (e.g. a client portal for the
Our clientele consists of ca. 10,000 ner for Ireland. Ireland continues to management of renewable energy
Real Estate companies and 200 be a key location for Foreign Direct projects and the related insurance
company clients. Investment (FDI) for multinational contracts).
companies seeking a European
Our main services are: Hub. Glennon has over 70 years’ Our clientele especially consists of
+ Risk management experience working with indig- producers (e.g. battery storage sys-
+ Insurance planning enous business and FDI compa- tems, e-charging poles, modules,
+ Policy handling nies in the general insurance and power inverters), operational man-
+ Policy management employee benefits areas and look agement companies of renewable
+ Quotation analyses forward to developing a close and energy projects (e.g. solar parks,
+ Claims administration collegial relationship with our uni- wind parks), general contractors,
sonSteadfast partner firms when a project developers and engineers,
We help our clients regarding all client requirement for an Ireland listed energy suppliers, municipal
their insurance needs. based broker arises.” John Bissett, utilities, cooperative societies, in-
Chief Executive Officer, Glennon. vestment companies and banks.
Contact:
Mr. Peter Fitzgerald (for P&C) Contact:
Contact: pfitzgerald@glennons.ie Mr. Hendrik Klingler
Mr. Eero Kuusela Mr. Davin Spollen (for EB) h.klingler@klingler-group.de
eero.kuusela@finib.fi dspollen@glennons.ie www.klingler-versicherungsmak-
www.finib.fi www.glennons.ie ler.de
6
MD Broker AG Nikoloz Group LLC RASHER Seguros y Reaseguros
Since 1991, we have been advis- In 2016, after 22+ years of insur- RASHER is an insurance broker with
ing medium and large industrial ance experience with world leading worldwide business. Since 1983 we
companies in all insurance and risk international insurance compa- have been working in close co-
issues. We are a team of longstand- nies and brokers, Nikoloz Kitiashvili operation with our clients to help
ing, very well-trained insurance established LLC Insurance Broker them transform risks into oppor-
specialists, who have a total of Nikoloz Group. The company is reg- tunities and growing with them in
more than 200 years of insurance ulated by Insurance State Supervi- their international development.
experience. This experience helps sion Service of Georgia, registration More than 40 colleagues in Madrid,
us optimally advise and support # 012031, April 2016. Barcelona, Valencia, Guadalajara,
clients from all economic sectors. NIKOLOZ GROUP LLC combines Cordoba, Malaga and Tenerife are
We are a leading insurance broker knowledge and experience of the dedicated to servicing our clients
in the fields of production, process- Georgian, regional (Armenia, Azer- worldwide. In addition, we have
ing, trading and selling of industrial baijan) and international markets one office in Lima, Peru, and will
goods (especially F&B). and delivers comprehensive risk open further branches in Mexico
management, insurance and re- and Panama shortly.
Our main products are: insurance solutions to companies
and its employees. Rasher places EUR 30 million in
+ company liability insurance premiums annually. We service
(including recall coverage) Nikoloz Group is mostly experi- +100,000 individual clients, affini-
+ property and machinery in- enced in Property, Energy, Car/Ear, ties and corporate clients.
surance (including BI) Motor, Group Personal Accident,
+ epidemic insurance Financial Institutions, D&O, General Specialization by risks and indus-
+ transport Insurance Liability, Employers Liability, Pro- tries include:
+ personal insurance (accident, fessional Indemnity, Health, Travel,
daily sickness allowance) Bank Assurance. + Aviation
+ construction insurance + Construction & Infrastructure
+ motor vehicle fleet insurance The current portfolio includes: + EB
+ Insurance and Reinsurance + F&B
We develop tailor-made concepts services for Professional In- + Medical Malpractice
and decision-making tools for our demnity + Motor
national and international clients. + Property Material Damage + Political Risk , Structured Credit
Some well-known references can + CAR/EAR + Real Estate
be found on our website. + Oil&Gas + Renewable Energies
Every day, we personally assist our + Aviation Liability + Sports & Events
clients in the event of claim and are + Health Plans + Surety and Trade Credit
always committed to their interests. + Motor Casco/MTPL.
Contact: Contact: Contact:
Mr. Thomas Cserhat Mr. Nikoloz Kitiashvili Mr. Javier Ramírez Ortuzar
thomas.cserhat@mdbrokerag.ch nika.kitiashvili@nikolozgroup.ge jramirez@rasher.es
www.mdbrokerag.ch www.nikolozgroup.ge www.rasher.es
7
Roanoke Insurance Group Foa & Son Corporation
Roanoke Insurance Group en- With over 150 years of history and
ables global commerce by pro- the ability to design cutting edge in-
viding insurance, surety and risk surance products, Foa & Son serves
management solutions for trade a sophisticated clientele looking to
and transportation. Headquartered protect their assets. Foa & Son’s
in Schaumburg, Illinois, Roanoke real-time market knowledge al-
has sales, service and underwriting lows them to design sophisticated,
locations throughout the United comprehensive and cost-effective
States and a network of sister ser- insurance solutions for their clients.
vice companies in Asia and Europe. Our offices, based in New York,
A part of Munich Re Specialty Group work with insurance companies
Ltd., a Lloyd’s of London Cover- all over the world to find unique
holder and a Managing General opportunities to help clients man-
Agent for American Alternative In- age risk.
surance Corporation (AAIC), Roa-
noke is equipped to meet client Foa & Son’s Commercial Insurance
needs worldwide. Division, Private Insurance Advisory
Service, Corporate Benefits Prac-
tice, Multinational Services Division,
and Blue Water Hull Division provide
insurance solutions to some of the
most prestigious firms in the United
States and around the world.
In-depth knowledge and experi-
ence extends to all principal sectors,
including international insurance,
food distribution, real estate, hospi-
tality, manufacturers, financial and
professional service firms, not-for-
profits, municipalities, automotive,
tech firms and ship owners.
Contact:
Mr. Jim Nerger Kontakt: Herr Ryan Kim
Jim.Nerger@Roanokegroup.com Contact: ryan.kim@capacitykorea.com
Ms. Barbara Spain Mr. Robert Sati www.capacitykorea.com
Barbara.Spain@Roanokegroup.com Robert.Sati@foason.com
www.roanokegroup.com www.foason.com
8
AuditRate Uncovers &
Recovers U.S. Insur-
ance Overcharges
ALPER SERVICES
JOHN PRZYBYLSKI
Organizations with operations in the U.S. generally The frequent errors and overcharges result because
pay large premiums for General/Products/Operations premiums are calculated according to complex em-
and—quite different from Europe and Asia—Workers’ ployment classification and rating regulations which:
Compensation insurance (WCI). The high costs of WCI + cover thousands of pages in auditors’ manuals;
often startle their headquarters’ leadership overseas. and,
We cannot say whether the unique U.S. system is worse + are far beyond the abilities of most carrier and
or better than international alternatives. We can say broker personnel
with certainty that insurance company underwriters
and auditors frequently make errors and that these Your clients with U.S. operations do not have to ac-
errors almost always favor the insurer! cept these expensive mistakes and, instead, may re-
alize immediate and long-term financial benefits by
engaging AuditRate to identify and correct any errors.
9
The corrections and resulting refunds address past The client:
and current years, and the savings continue into the + has received close to USD 1,400,000 in over-
future. It is important to note that if AuditRate secures charge refunds;
no recoveries, your client pays nothing. Instead, the + remains protected by the same A+ rated carrier;
fees are paid only if there is a recovery and only once and,
your client receives the refunds. Here is an example + will receive the cost-reducing benefits for years
from this year. to come!
A worldwide designer and installer of logistics and Since its 1984 founding in Chicago, AuditRate has se-
distribution systems has operations in several U.S. cured overcharge refunds in excess of USD 30,000,000
states. Their insurance broker and A+ rated insurer for its clients.
for many years had misclassified their employees’ If this unique service may benefit your clients, please
work. Over-estimating the hazards resulted in years contact our AuditRate Adviser.
of premium overcharges on their WCI.
AuditRate’s experts quickly identified the errors, docu-
mented them and affirmed with each state’s rating
bureau the corrected classifications (and rates). They
then worked with the insurer on revising the past Contact:
and current years’ policies. The insurance company Mr. John Przybylski
cooperated fully. The results? JPrzybylski@AlperServices.com
www.alperservices.com
10 ZUSATZINFO FRANCE Construction Insurance GROUPE SATEC RAPHAEL CERDA The French system was designed to provide the prin- It’s a double trigger system: cipal with effective protection against major damage + Legally mandated decennial liability insurance for that can occur or emerge in the decade that follows constructors. They must be able to prove that the completion of the building. such an insurance has been taken out by them to The decennial liability also known as ten-year guaran- cover this liability at the beginning of the works. tee was imposed in 1978 with Spinetta Law. Construc- + Legally mandated prefinancing insurance for tors and any other participant to the construction are principals. Therefore, the principal must - before fully liable for all material damages to the works during the beginning of the works - take out an insur- a 10 years’ period after completion of works - even if ance cover, in his name or on behalf of succeed- it results from a ground defect which endangers the ing owners, sufficient to cover, independently of stability of the works or makes them unsuitable for any pursuit of liability, payment for repair of all the intended use by affecting one of its components such damage. or equipment.
11
The decennial cover becomes effective at the date Note on “E.P.E.R.S” Products
of acceptation of the works by the principal. That ac-
ceptation of works is defined by law (article 1792-6 E.P.E.R.S is the abbreviation for “Eléments Pou-
French Civil Code). vant Entraîner la Responsabilité Solidaire”, i.e.
Elements Able to Provoke the Connected Li-
Liabilities & schedule ability.
1. The notion of EPERS manufacturers 4 cumulative conditions are to be fulfilled:
All the manufacturers can be affected by an assump-
tion of liability. The legislator’s aim in enacting this 1. The design is forwarded
law is the joint liability of the manufacturer and the 2. Special pre-determination for a final spe-
builder in certain cases. cific use
Every contractor (and every manufacturer of EPERS 3. Made to meet with specific demands, de-
as well) must be insured for his decennial liability. termined in advance
4. Incorporation without any
2. The main consequences modification
+ Insurers must be licenced
For example ACE, CHUBB, CNA are not licenced
for legally mandated decennial insurance.
+ Capitalization system
The premium of the year (Decennial Liability)
and the premium of the works (Dommages Ou-
vrage) have to be kept and capitalized by the in-
surer so as to be able to pay the claims inherent
to the works, for a ten (10) years’ period.12
+ Form wording insurers who was the first to enter the French market,
Automatic clauses, dictated by the law GABLE INSURANCE (based in Lichtenstein) recently
+ Claims bankrupted and closed: consequently, all companies
Claims instruction is legally determined insured by GABLE are no longer covered for their ex-
(i.e. timetable for instruction and legal penalties) isting decennial risks and no traditional insurer wants
to take back all these current guarantees.
All participants must be insured for the global
amount of works. SATEC Group is a major Construction Insurance Broker
in France (Top 5) combining strong underwriting and
3. Decennial insurance market claims management expertise and accompanying top
This very exclusive market was originally 100 % French. Constructors companies (Bouygues Construction,
It is now confronted with the arrival of new actors: GCC) and Investors (AXA Real Estate, AVIVA Investors,
European insurers operating under the freedom to La Française, La Compagnie de Phalsbourg ) in France.
provide services (FoS).
Only a dozen of French insurers are active in the Contact:
market, 3 majors in dominant position (SMA – AXA Mr. Raphael CERDA
– ALLIANZ). The same is true for the reinsurance raphael.cerda@rcb.fr
market where only 5 reinsurers - French, Swiss and www.satecassur.com
German – are recognized and able to deliver capi-
talization funds. The cost of the premiums is high
and the underwriting of these insurances is techni-
ADVERTISE
cal and complex, especially for foreign construction
companies coming to work in France.
In accordance with Directive 2006/123/CE of Euro-
pean Parliament, the number of insurance companies
from other member states of the European Economic
Area (EEA) authorized to do business in France under Please contact us for
the FoS flourished for a time. Those insurers offer further information!
disproportionate pricing conditions and convenient
underwriting – they registered spectacular results
HERE
and growth.
This market opening is beneficial to the consumer.
Nevertheless, FoS often hides the creation of rein-
surance solutions in faraway countries that have no
competence to deal with capitalization and they
don’t accede to the Convention de Règlement
de l’Assurance Construction (French Convention
of Construction insurance settlement). One of these13
Psychosocial
risk factors
PROTECCIÓN DINÁMICA
PETER WEBER MERKEL
On October 23, 2019, the NOM-035-STPS-20 regula- job satisfaction and the conditions of their organiza-
tion on “Psychological risk factors at Work“ issued by the tion, on the one hand; and on the other, the workers’
Ministry of Labor and Social Welfare entered into force. abilities, their needs, their culture and their personal
Although this standard was first published one year earlier, situation outside of work, all through perceptions and
psychosocial risk factors are not a new issue, since the experience that can influence health, performance and
international Labor Organization and the World Health job satisfaction.
Organizations have defined and recognized the elements What is the purpose of NOM-035?
that can influence occupational health already in 1986. Establishing the elements to identify, analyze and
prevent psychosocial risk factors, as well as to pro-
What are psychosocial factors? mote a favorable organizational environment in the
The psychosocial factors at work consist of the in- workplace.
teractions between the workers, their environment,14
Is it mandatory? environment.
Yes: compliance with the Official Mexican Standard + Comply with the workplace psychosocial risk
is mandatory for all work centers operating in the prevention policy.
national territory; However, there are specific chap-
ters that must be met depending on the number of What will be the sanctions?
workers in the organizations: The penalties for non-compliance will be subject
to the current national regulations and will be im-
+ Up to 15 employees: posed by the Ministry of Labor (Secretaria de Trabajo)
Only prevent psychosocial risk factors and through the Health and Safety Commission (Comis-
promote a favorable organizational environment. ión de Seguridad y Higiene ), according to the con-
+ 16 to 50 employees: ditions and characteristics of each case, since they
Prevent psychosocial risk factors, promote will make random visits and inspections requesting
a favorable organizational environment and apply companies’ documents that demonstrate compli-
questionnaires to identify psychosocial risk factors. ance with NOM-035.
+ More than 50 employees:
all provisions of the standards Why does NOM-035 benefit your company?
Because it fosters the Culture of Labor Welfare, Em-
What are the employer’s obligations? ployee Experience and Work Commitment, in addi-
+ Have a psychosocial risk prevention policy. tion to:
+ Adopt measures to prevent and control psy- + Decreasing rotation
chosocial risk. + Attracting talent
+ Identify the workers who were subject to severe + Reducing absenteeism
traumatic events during or on the occasion of + Improving corporate reputation
work, and channel them for their attention to + Raising productivity
the social or private security institution, or to
work, and channel them for they attention to Protecction Dinámica has flexible solutions and in-
the social or private security institution, or to surance options that adopt to your personal, family
the doctor of the workplace or the company. and business needs, guaranteeing the best protection
+ Implement actions and programs for the pre- with the adequate coverage.
vention od psychosocial risk factors, there pro-
motion of a favorable organizational environ-
ment and the prevention of workplace violence.
What are the workers obligations?
+ Avoid acts that damage the favorable organiza-
tional environment and report actions that gen- Contact:
erate hostile environment. Mr. Peter Weber Merkel
+ Participate in the identification of psychosocial p.weber@protecciondinamica.com
risk factors and in the evaluation of the work www.protecciondinamica.com15
15
Correcol continues its
expansion plan
in Colombia
CORRECOL
ENRIQUE ACEVEDO
The Colombian Insurance broker Correcol S.A. relies of Barranquilla, Medellin, and Manizales. In 2019, Cor-
on its range of services, technological innovation and recol opened an office in the city of Cali.
professional team to consolidate its geographical ex- The company has been in the national insurance mar-
pansion and create long-term relationships with all its ket for more than 65 years and has since achieved a
client base. continuous growth, which has allowed Correcol to
be ranked within the largest broking companies in the
A Colombian company with 100 % national capital and country, thanks to a long history of experience, knowl-
extensive experience in the insurance broking sector, edge of its staff, flexibility, approach towards innovation
Correcol has begun a process of geographic expansion and ability to adapt to change.
which allows penetrating new business niches, bringing
together long-term commercial alliances and providing
services in close proximity.
Being the largest national broker, Correcol aims at con- Contact:
solidating its brand, one that identifies with all Colom- Enrique Acevedo
bians. For this reason, in 2018, Correcol continued its EAcevedo@correcol.com
geographic expansion, opening branches in the cities www.correcol.com16 The globalization of D&O liability ZURICH INSURANCE PLC LUCA RAVAZZOLO At a global level, there has been a worsening claims environment for directors’ and officers’ (D&O) liability ever since the financial crisis, and the current situation reflects a significantly more challenging regulatory and legal environment than in the past. Regulators and policymakers around the world have focused their attention more and more on directors and of- ficers in their efforts to improve corporate behavior, driven by public and shareholder pressure in the wake of the financial crisis. Enforcement agencies have prioritized individual responsibility in the face of
17
17
corporate wrongdoing and have repeatedly promised companies may have listings in different countries.
to come down harder on offenders. One event, corporate conduct of any sort, can give
As individual accountability and responsibility have rise to investigations by different regulators which
increasingly moved into focus, regulators are more are now sharing much more information across bor-
often looking beyond the corporate legal entity to ders. This can then lead to local lawsuits in separate
the actual or alleged individual wrongdoers and as a countries and an increase in internal investigations
result, directors have more ‘skin in the game’. At the by the company itself.
same time, there are record levels of securities class
actions, and collective redress is spreading globally, With actions arising from the same underlying cause
together with the rise of litigation funding. or wrongful act taking place in different jurisdictions,
and in some cases multiple settlements being required
There are two important themes here. Firstly, tra- or fines being levied, the frequency of large losses,
ditional finance-related and regulatory-based D&O and their severity, is significantly higher.
claims, such as those alleging misrepresentation of The development of these costs is certainly more
financial statements or inadequate disclosures, or difficult to monitor and manage as multiple parties
claims arising from regulatory actions, have become are involved with different budgets and objectives.
more cross-border, and more systemic. With this There are also possible conflicts of interest between
globalization of claims, we have noticed an increase individual insured persons, the insured company, the
in frequency and severity impacting the cost of D&O insurance carriers and even the insurance brokers.
claims, both with respect to defense costs and to
settlements. International programs
Due to this globalization of claims, it is becoming
Secondly, we are seeing new emerging risks like cy- more and more important to have an international
ber attacks, data breaches, violations of privacy and program with local policies in place that can respond
confidentiality, social engineering fraud, as well as in the appropriate manner. Within international pro-
environmental damage and climate change-related grams, we are seeing local policies being triggered
events. These risks directly relate to the increased more often (and sometimes more than one) than in
personal liability of directors for corporate conduct the past.
and behavior, as well as their duty of care towards
the company and their shareholders and the duty to What are the important elements of a D&O interna-
supervise the implementation of appropriate compli- tional program? First of all, it is important to have local
ance and risk management frameworks and resilience policies in place to be able to respond immediately,
plans for these new risks and exposures. especially where the company is not allowed to in-
demnify the director in the local jurisdiction. It also
Increasingly global requires an experienced claims team that understands
D&O liability is becoming increasingly global and the ‘rules of engagement’ in the local environment
therefore more complex. Multinational companies and is able to properly advise all the stakeholders.
are exposed to litigation in different jurisdictions for Also, key is to work with an insurer with a broad net-
disclosures they make or for corporate conduct. Public work to cover as many jurisdictions as possible, and18
French syndi-
with local claims teams who have a deep understand-
ing and specialism in D&O litigation.
It is crucial to have the requisite level of experience
in handling these types of claims, which can provide
cates merge
the required speed of response. Local teams must be
CAT GROUPE ROEDERER
empowered to make decisions, but in full coordina-
MICHEL SCHIRA
tion and alignment with the underwriting and claims
leadership teams of the producing country – provid- On June 18, 2019, the two main insurance broker
ing our client an essential global view. syndicates, CSCA and Planète Courtier, formalized
their merger under the unique Planète CSCA banner.
Lastly, an international program must provide broad,
up-to-date and consistent policy forms, to avoid as The 2,000 Planète CSCA member brokers represent
much as possible any gaps or conflict between the 75 % of the business and 35,000 employees in the
master policy and local policies, particularly in juris- professional insurance brokerage industry.
dictions where reliance on DIC language from the The new syndicate wants to represent all categories
master policy is not allowed or available. of brokers: general brokers, wholesalers, affinities,
Directors and officers are facing more regulatory comparators, marine and transportation brokers and/
enforcement actions, more investigations by their or agents of insurance intermediaries, but also wealth
companies and a growing list of new risks or threats management advisors.
that affect the role of directors and introduce new
responsibilities in areas of risk management, compli- Beyond its own governance, the projects that await
ance and corporate governance. At the same time, the new union are important.
the risks and claims are becoming more global and “Regarding regulatory developments such as IDD,
interconnected. In such an environment, an interna- GDPR, PRIIPs, we will be entering into the revision of
tional program from an insurer with a global footprint these guidelines and we already know that the debates
and considerable experience in D&O liability is more will be fierce,” says Bertrand de Surmont (President
important than ever. of CSCA), recalling in passing the stakes surrounding
the future of the brokerage industry and the impor-
By Luca Ravazzolo, global underwriting officer, fi- tance of the proximity of brokers as accompanists of
nancial lines, commercial insurance, Zurich Insur- economic actors at the heart of the territories.
ance Group.
Sources: https://www.gestiondefortune.com ,
This article was first published in Commercial Risk https://www.argusdelassurance.com
on 8 November 2019.
Contact: Contact:
Mr. Dimitrios Mazarakis Mr. Michel Schira
Dimitrios.Mazarakis@uk.zurich.com mschira@roederer.fr
www.zurich.com www.roederer.fr19
unisonSteadfast
launches China
Liaison Office in
Shanghai
WEIYING YANG BECOMES CHINA LIAI-
SON OFFICER AND OFFICIAL REPRESEN-
TATIVE OF UNISONSTEADFAST IN CHINA.
unisonSteadfast is pleased to announce the launch was also responsible for high-end clients and their
of its China Liaison Office in Shanghai on October group medical insurance needs.
1, 2019 as well as the appointment of Weiying Yang,
who will represent the interests of the global net- In her new role as the unisonSteadfast China Liai-
work in China, as unisonSteadfast Liaison Officer for son Officer, Weiying Yang assumes responsibility for
Greater China Business. unisonSteadfast’s China business and has a liaison
function, in view of the local partnerships in China,
Weiying Yang, originally from Shanghai (China) with including in-house brokers of large Chinese cor-
bi-cultural education and a bachelor’s degree in porations. Based at the premises of our member
Economics and China Studies from Westfälische NAVIGATOR International in Shanghai, she is able
Wilhelms-Universität Münster, has lived in Germany to support unisonSteadfast regarding any China-
for more than 20 years and has been working in the specific insurance topic. Furthermore, she serves
insurance industry for more than 7 years. as the first contact person for new clients as well
as the main contact for unisonSteadfast members,
She began her insurance career as a client consul- business partners and insurance carriers in China.
tant as part of the China team at one of the largest
insurance broking companies in Hamburg and was “I’m delighted to welcome Weiying Yang to her new
responsible for cross-divisional consulting and ser- position at unisonSteadfast China Liaison Office,”
vice of Chinese corporate and private clients in all said Wolfgang Mercier, unisonSteadfast, President &
lines of business. CEO, “With Weiying’s broad expertise and knowledge,
unisonSteadfast has the opportunity to participate in
To focus on international commercial insurance busi- the “Belt and Road” project - along with companies
ness, she joined unisonSteadfast AG as an Account from more than 60 countries in Europe, Africa and
Manager in 2016. Asia – on a long-term basis and to strengthen its
position in the Chinese market.”
In 2018, Weiying moved to China to gain work experi- Contact:
ence with an international insurance group. Besides Ms. Weiying Yang
being the contact person for compliance issues, she weiying.yang@unisonsteadfast.com20
The Risks Behind Ride
Sharing – And 34 Tips To
Keep Teens Safe
TGC ASIA
ALAN LIM
As an adult, you know exactly how dangerous the able in Singapore than any other app. But let’s take
roads are and how risky cars are: more than a ton of Lyft (https://www.lyftimpact.com/stats/national) as
metal and plastic travelling at high speed. Modern an example, simply because they’ve released a use-
vehicles are a lot safer than they used to be, with ful Economic Impact report for 2019.
essential safety measures built in as a standard, but
the roads are still very dangerous places. A driver can Lyft is a Grab-like ride-hailing business in the USA.
drive as well and safely as possible, but other drivers Launched in 2012, it was designed to provide peo-
are not always quite so careful. There’s such a lot to ple with short rides in cities. It also has a secondary
look out for, and so many distractions, especially for long-term goal, to provide a practical alternative to
teen drivers. So it’s comforting to know that ride share owning a car, putting people first and cars second in
is the transport of choice for many of today’s teens. a climate change-affected world where we all need
to think twice before driving.
Every generation has its own way of getting from A
to B. In the 1970s young people hitch-hiked. Today’s The 2019 Economic Impact Report from Lyft provides
millennials love ride share, and the trend is so strong useful insight into teen ride shares. It says ride-sharing
that the millennial generation is sometimes called the makes it easier for millennials to be social. Nearly half
Ride Share Generation. While it’s safer in many ways, of riders are more likely to explore their city when
with plenty of young people rejecting driving lessons there’s ride share available. It’s easy and convenient
altogether, today’s fast-growing trend for ride sharing to get a Lyft via your smartphone, by a simple push
comes with risks of its own. If your teen is into ride of a button. Ride share lets teens make last-minute
share, here’s some essential insight into the trend decisions. With ride sharing you can get from A to B
plus some useful tips about teen ride share safety. quickly and efficiently, there’s no stress around car
parking or drink driving, and millennials – who don’t
Millennials and ride share – Why’s it so popular? tend to carry cash – can pay on their phones. Be-
The Grab app (https://www.grab.com/sg/) serves cause payment information is stored in the Lyft app,
168 cities across eight nations and is very popular in it removes cash from the equation.
Asia. It joins up taxis and private hire cars with nearby
customers using a clever location-sharing system. The report also reveals how millennials are less likely
Grab is so popular that they have more taxis avail- to want to buy a car than previous generations. When21
21
ride share is so easy, why should they buy a car? It an app might not have the right insurance.
makes financial sense when your funds are limited.
And it’s also a ‘green’ thing, a climate change thing. If your teen is enjoying ride share, either with their
Young consumers are a lot more likely to think about friends or alone, here are our tips for staying safe
a product’s long term sustainability and environmental whatever ride share app they choose.
responsibility before buying.
34 essential teen ride share safety tips
Ride share and insurance – Are the rides properly
insured? 1. Make your teen aware of the dangers of getting
The insurance industry has stepped in with products into a car with a stranger on their own – and
to help drivers registered with apps like Lyft, Grab and keep reminding them so they don’t forget!
Uber. Ride share insurance is designed for people who
drive for a ride-sharing company, specially created to 2. Before choosing a ride share app, check that the
close the gap between personal car insurance and the drivers have completed criminal background
limited commercial policy offered by the ride-share screening before they can accept rides.
company. Most personal car insurance policies don’t kkkk
cover commercial activity, including waiting for some- 3. Avoid thieves and pickpockets. Wait indoors for
one, picking them up and transporting them. At the the car to arrive. Don’t stand on the pavement
same time full commercial insurance might be too with your phone in your hand .
expensive for drivers, and might also be too compre-
hensive for the relatively simple job they need to do. 4. Choose a pickup spot where your driver can
It’s important to use an official ride share app, since easily pull over, not at a bus stop, any other
an independent ride share driver not registered with non-stopping zone or a dangerous place .MITFAHRGELEGENHEITSGESCHÄFT
22
5. Ask the driver to confirm your name so you
know for sure he’s your ride.
6. Check the mode of payment before you get in
the car and confirm the fare verbally before you
set off.
7. Avoid confusion - don’t make last minute
changes to your destination.
8. Treat the driver with respect and consideration.
9. If you’re alone sit, in the back seat not the front.
10. Check the driver’s ID matches the photo reg-
istered in the app before you get in the car.
11. Check the car’s number plate matches the one
in the app.
12. Your driver will take the shortest route for fixed
fare rides, recommended by their GPS. Don’t
suggest a longer route unless you are prepared
to pay extra, and do it at the start rather than
half way through the ride.
13. Check you have all your belongings with you
when you leave the car. And make sure you
haven’t left anything behind. 17. Never mess around in a car. Driving is a serious
business, so stay quiet and respectful while the
14. Rate your driver afterwards. It helps the service driver does their job.
improve, for example by removing bad drivers.
18. Keep your personal information to yourself, like
15. Always wear a seat belt, front and back, even you would in any public place.
for short trips.
19. If you feel uneasy for any reason, it’s good to
16. Don’t ask your driver to squeeze more people trust your own instincts.
into the car than the car is designed for – it’s
dangerous. For big groups, request a Lyft XL.23
23. Know your surroundings – If you’re in an un-
familiar city or area, track your route on a map
app to make sure the driver is going in the right
direction. Open up own maps tool, enter your
destination and follow along, noting any suspi-
cious changes in the route.
24. Avoid calling rideshares when you’re alone at
night. If you are going to be picked up from a
bar or restaurant, always share your trip with
other people so they can track your ride. The
person you share with will be sent a notification
to their phone and follow you via GPS. With
Uber all you do is press ‘share my ETA’ and with
Lyft you simply use ‘send ETA’
25. Travel in groups - There’s always safety in num-
bers. Whenever possible, ride with friends or
family members to your destination. If you are
travelling alone and feel uncomfortable, call
a friend or family member and let them know
where you are going and what time you expect
to arrive.
26. If you feel uncomfortable, stop the ride. You are
allowed to end your ride any time you like. Just
ask the driver to stop and let you out. Remem-
20. Tell someone at home where you are going and ber the driver’s ride history doesn’t reveal your
when you’ll be home. address or contact information.
21. Check your ride share app’s safety features, 27. Exit the car at the curb side, not into the road.
which can include emergency assistance, phone
number anonymisation, 24/7 customer support, 28. Check for vehicles, scooters, bikes, and people
a Safety Center, GPS-Tracking, speed limit alerts before you get out, so you don’t cause an ac-
and driver profiles. cident.
22. Never accept a lift from a person who isn’t regis-
tered on a drive share app.24
29. If you think you might be in trouble, call the hasn’t simply created new products to fulfil demand,
police emergency number on your mobile and but it isn’t that simple. There’s legal uncertainty for a
if you can, get out of the car and away from it. start, with significant questions outstanding around li-
Find other people or an open business where ability for accidents involving ride-share drivers. There
you’ll be safe. If you need to make people take are questions around whether the higher standards of
notice, shout or make a noise. care that exist around taxis apply here. And there’s also
underwriting uncertainty, since there’s very little data
30. If a crime occurs, always report it to the police. available for insurers to use to underwrite this new set
of risks.
31. Pre-programme emergency and non-emer-
gency phone numbers into your mobile so There is regulatory uncertainty because it’s often impos-
they’re there if you need them. sible to treat commercial risks as part of a personal policy.
Market uncertainty means it’s very difficult to estimate or
32. Uber has recently added some additional safety predict the future of the rise share market, how big it’ll
features to their app. The panic button, which get, indeed whether it will even survive in the long term,
you can press any time during the ride, con- either in its current form or in a new form we haven’t
nects you to the police emergency number. seen yet. Right now insurers all over the world are look-
When you do so the app automatically sends ing into ways to fill the insurance gap that ride share falls
your location to the police. into. We’ll report back as soon as there’s some clarity.
Stay safe, enjoy life!
33. If your teen uses a ride share service, discuss
safety measures openly with them as a family to
make sure they know exactly what to do to stay Sources:
safe. If, for example, your teen feels their driver is https://rmis.ucsf.edu/tips-stay-safe-while-ridesharing
driving dangerously, it can be hard to speak up. It’s https://www.smartertravel.com/rideshare-safety-tips-for-trav-
a parent’s role to make sure teens are confident to elers/
say so if they feel their safety is at risk. https://www.uber.com/gb/en/ride/safety/tips/
34. The authorities in South Carolina, USA, have http://theeverygirl.com/how-to-stay-safe-in-a-rideshare/
confirmed that activated child safety locks prob- https://eu.cincinnati.com/story/news/2019/03/31/10-safety-
ably stopped the murdered Samantha Josephson tips-know-when-using-uber-lyft-rideshare/3325100002/
from escaping a car she mistakenly thought was https://mashable.com/article/lyft-driver-safety-background-
her Uber. Did you know you can disable the child checks-id-verification/?europe=true
locks in a car? https://www.lyftimpact.com/stats/national)
If not, find out how to do it and teach your teen. (https://www.grab.com/sg/)
Insurance challenges within the ride share market Contact:
Rapid cultural changes are a challenge for the insur- Mr. Alan Lim
ance industry, and the adoption of ride share services alan@tgc.asia.net
has been unusually fast. You might ask why the sector www.tgc-asia.net25
Working Group EB:
Status Report
UNISONSTEADFAST
SEBASTIAN ERNSTING
The subject of EB is largely underrepresented in our same time, the portfolio will be analyzed in terms
network, with the EB divisions representing only about of EB opportunities. Initial successes have already
8 % of the contracts handled by unison. However, there been achieved.
is enormous potential, because in order to generate
business, it is not necessary to win new clients, but unisonSteadfast is happy to provide support in the
to develop existing relationships. context of sales support in order to discuss these po-
tentials and generate sales approaches. This enables
The EB Working Group has set the goal of expand- us to comprehensively review existing documents,
ing this considerable potential. This is to be achieved identify gaps and offer appropriate solutions. Addi-
through numerous individual measures. The first step tionally, it gives us the chance to offer comprehensive
in this direction was the realignment of the Working insurance cover not only for P&C coverage, but also
Group with the following members: for the EB lines. This not only enables us to compre-
hensively advise our clients, but also to protect their
Mc Griff USA Greg Mosely portfolios against competition by fully covering all
Groupe Roederer France Sabina David lines of business.
SCHUNCK Germany Achim Schneider
Jori Armengol Spain Jordi Pou I look forward to continuing my work in the EB Work-
GOTUACO Philipines Andrew Gotuaco ing Group. Please do not hesitate to contact me if
Malakut Russia Anna Kraivina you have any questions or inquiries.
Renomia Czech Barbora Kreising-
Republic erova
Induver Belgium Jean-Luc Verbaet
Kröller Boom Netherlands Luc Filipsen
Swissbroke/ Swiss Peter Stehren-
Assepro berger
Erskine Murray UK Tom Bartleet
Contact:
A first telephone meeting has already taken place. Mr. Sebastian Ernsting
One of the next steps will be to target insurers with Tel: +49 40 80 90 729-22
the aim of entering into cooperations, in order to Sebastian.Ernsting@unisonsteadfast.com
achieve better conditions for our members. At the www.unisonsteadfast.com26
FINLAND
Full commission ban and
inclusion of VAT
in Finnish broker market
FINIB OY
EERO KUUSELA
Finnish brokers have had a full commission ban kers declined almost 50 % after the 2005 law, some
since 2005 changing into agents and some simply had to close
The ban was established already in 2005 and was their business or reduce their staff.
heavily lobbied by the local insurance companies.
EU Commission found this law being against the
In respect of non-life business, the local insurance directive, but Finland took no action to correct the
companies started net quoting at the same time. In legislation.
life and pension business, however, insurance com-
panies never started net quoting. This meant that Unique implementation of IDD guidelines
in practice all life and pension brokers closed their The new law regarding insurance distribution came
business and were forced to leave the market for into force in October 1st 2018. The meaning of the
insurance companies’ own salesmen. law was to implement the new EU directive con-
The net pricing system killed the growth of insurance cerning Insurance Distribution (IDD2). The officials
broking businesses in Finland. The number of bro- preparing the new legislation disregarded some of27
the main objectives set by the directive and mainly that in respect of insurance broking, the law means
kept the old regulation in force. only competitive tendering of insurances, but no
other service. Not even policy renewals. Meaning
The new law contains the same provisions as in 2005 that from now on almost all of the service brokers
law which prohibit Finnish brokers from receiving any give the client, should be subject to VAT .
remuneration from any other party than the client.
Also keeping consumer money in broker’s posses- Other intermediation of insurance would still remain
sion is forbidden. exempt from tax, increasing competitive edge for
insurance companies’ own agents, MGA’s and multi-
So basically there is no broker market servicing con- agency business.
sumers, and also smaller companies are mostly do-
ing business directly with insurance companies. The It is highly likely that this surprising interpretation by
Finnish market is dominated by four major insurance the tax authorities will be tested by the broker mar-
companies which have a huge lobbying power. ket in court.
Finnish Insurance Brokers find the legislation still be-
ing against the directive.
Inclusion of VAT threats Finnish brokers
Intermediating of insurance is exempt of VAT by law in
Finland. And has been for more than 20 years. Various
Finnish brokers have received written confirmations Contact:
from tax authorities during these years confirming Mr. Eero Kuusela
this fact. In 2019, however, tax authorities have made eero.kuusela@finib.fi
a bizarre interpretation of the law claiming suddenly www.finib.fiNEUE MITGLIEDER
28
Colombia
ITAÚ SEGUROS
ERNESTO SIERRA
Political situation: One year following the inau-
guration of President Ivan Duque, social unrest has
increased. The reasons are: fiscal changes, failure
to comply with the agreements stipulated with the
Columbian guerrillas, increasing unemployment and
possible pension reforms, which are to be presented
to the senate. The government has the backing of
the society, however, needs to review its decisions
and future project planning, as the impact of exter-
nal parties (migrants from Venezuela) fuels vandal-
ism in some cities. All in all, the political situation is
stable but there are some adjustments to be made
in a timely manner.
Political and economic prognoses: One expects to there is concern about financing migration and Co-
achieve national agreements with all trade unions and lombia’s relations with Venezuela.
social players quickly to stabilize the situation marked
by recently scheduled demonstrations and strikes. In As a broker, what can you offer your clients to
the economic aspect, a 3 % growth is hoped for, so face these inconveniences?
that by 2020, Colombia will be the country with the We have carried out campaigns to update insured
highest growth rate in South America and shielded values to reduce the impact of the revaluation of the
from the negative effects of the economies of the dollar, intensified the offer of credit insurance and
neighboring countries. lost profits to compensate for the financial effects
caused by damages resulting from social protests.
Communication: Due to political difficulties, were
policy emissions as well as the communication be-
tween Columbia and other countries affected? No
Payments: Are there any delayed payments? In do-
mestic business, it is possible to procrastinate pay-
ments in several sectors for some days, but at an Contact:
international level, it is the highest priority to meet Mr. Ernesto Sierra
portfolio obligations. ernesto.sierra@itau.co
Are there any special doubts? At the social level, www.itau.co29
29
transport advisors, the patience of the public seemed
to have reached its limit.
By the night of October 18, many cities in Chile were
mined by protests in all streets and confrontations with
the police, to which President Piñera responded by
declaring a state of emergency and imposing a cur-
few from 6:00 p.m. This measure did not completely
stop the demonstrators, which generated chaos and
popular disorder in the key sites of the cities, which
soon saw situations of violence, mobs, looting and
fires in places of commerce such as supermarkets,
malls and pharmacies mainly.
Apparently, the excessive reaction of the protesters
was due to much more than the increase in trans-
port costs.
Since the return of democracy in the early 1990s, Chile
has been a country that has rebuilt itself at a dizzy-
ing speed, but in exchange for deep social disparity.
Chile
A political division marked by the violence of Pino-
chet’s regime against deserters and communist party
militants, plus the growth of one of Latin America’s
“wildest economies”, has put the majority of the
CONOSUR SEGUROS
Chilean people at the bottom of the social scheme.
VIERA GUBIN
During the protests that we have experienced since
Political situation: Since October 18, Chile has been
mid-October, thousands of people began to demand
going through one of the most relevant deliberate
the resignation of the president, echoing protest songs
socio-political crises since the return to democracy
from the time of Augusto Pinochet’s military dictator-
in the early 1990s. Chile has joined other countries
ship during the 1970s and 1980s. The demonstrations,
such as Ecuador and Bolivia in expressing its wide-
it seems, were a symbol of the fatigue in the face of
spread discontent with the way politics is conducted
“the famine and inequalities of the country”.
in Latin America.
The worst of Chileans’ nightmares returned to the
Following President Sebastián Piñera’s announce-
streets when President Piñera announced that the
ment to increase the price of the Metro (subway)
riots were “a war” and authorized the Chilean Army
ticket from 800 to 830 Chilean pesos (a bit more
forces to intervene in this war on its own national ter-
than US$1) upon the recommendation of his public
ritory, a frequent image during Pinochet’s dictatorship.You can also read
